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SCA Interim Report
1 January – 30 June 2010




                           Interim Report Q2 2010
Q2 2010 vs Q2 2009
SCA market update


    Significantly increased raw material prices
       OCC +330%
       Recovered paper US +70%
       Recovered paper Europe +120%
       Pulp +60%

    Hygiene business
       Good growth for Incontinence care, AFH tissue and Feminine care
       Continued good growth in emerging markets


    Packaging and Forest Products
       Increased demand for Packaging
         • Corrugated volumes increased 9%
       Increased demand for Publication papers
         • Publication paper volumes increased 2%



2                                                                        Interim Report Q2 2010
Q2 2010 results
SEK millions                                 Q2       Q2    Change,    Change,        Q1
    unless otherwise stated                2010     2009    Q2/Q2,%   Q2/Q2,%**    2010

Net sales                                 27,652   27,915     -1         6        26,722
EBIT*                                      2,440    2,368     3          6         2,027
EBIT margin* (%)                             8.8      8.5                              7.6
Profit before tax*                         2,196    2,014     9         12         1,748
Earnings per share (SEK)                    2.04     1.66     23                     1.53
Cash flow from current operations          1,668    3,047                          1,148
Debt/Equity ratio                           0.62     0.71                            0.57




* Excluding restructuring costs
** Adjusted for exchange rate movements
3                                                                            Interim Report Q2 2010
H1 2010 results
SEK millions                                 H1       H1    Change,   Change,
    unless otherwise stated                2010     2009       %       %**

Net sales                                 54,374   56,242     -3        4
EBIT*                                      4,467    4,504     -1        3
EBIT margin* (%)                             8.2      8.0
Profit before tax*                         3,944    3,525    12        16
Earnings per share (SEK)                    3.57     3.24    10
Cash flow from current operations          2,816    4,687
Debt/Equity ratio                           0.62     0.71




* Excluding restructuring costs
** Adjusted for exchange rate movements
4                                                                       Interim Report Q2 2010
Q2 2010 vs. Q1 2010
Summary
    Group
       Sales increased 3%
       EBIT increased 20%
       Profit before tax increased 26%

    Business areas
       Higher EBIT in all business areas despite
       higher raw material costs
       Personal Care, EBIT increased 2%
        • Higher volumes
       Tissue, EBIT increased 11%
        • Higher volumes and lower distribution costs
       Packaging, EBIT increased 59%
        • Higher prices and volumes
       Forest Products, EBIT increased 42%
        • Higher prices and lower energy costs


5                                                       Interim Report Q2 2010
Net debt
And debt payment capacity

SEKm                                               %


                                  35%
                            31%         33%
                  28%
        25%




6                                        Interim Report Q2 2010
Debt maturity profile

                      Total debt: SEK 42,492m
     11,183

     6,975
                                                        9,254
              8,546
                 9

              8,537
                                                6,001


                                    4,256
                         3,252
     4,208




                                                                +


                 Cash and cash equivalents SEK 3,999m
                 Unutilized credit lines SEK 29,503m
7                                                       Interim Report Q2 2010
Personal Care
  Q2 2010 vs Q2 2009


                          6,418    6,650
                                                              Sales decreased 3% (+2%*)
                                                                 Incontinence care increased 5%*
                           -3%
                                                                 Feminine care increased 7%*
                                                                 Baby diapers decreased 8%*

SALES SEKm              Q2 2010 Q2 2009

                                                              EBIT decreased by 8%** (4%***)
                          753**
                                    820                          Higher volumes
                          -8%**                                  Higher raw material cost
                                                                 Increased market activities


EBIT SEKm                 Q2 2010 Q2 2009


EBIT margin            11.7%** 12.3%
* Excluding exchange rate effects
** Excluding restructuring costs
*** Excluding restructuring costs and exchange rate effects
   8                                                                                           Interim Report Q2 2010
Tissue
  Q2 2010 vs Q2 2009

                                             Sales decreased 4% (+2%*)
                         10,064     10,474      Consumer tissue decreased 1%*
                           -4%
                                                AFH tissue increased 8%*


                                             EBIT decreased by 22% (19%*)
                         Q2 2010 Q2 2009        Higher raw material costs
                                                Slightly lower prices
                                    1,015

                           791
                                                Lower distribution costs
                                                Synergies from acquisition
                          -22%




EBIT SEKm                Q2 2010 Q2 2009


EBIT margin               7.9% 9.7%


* Excluding exchange rate effects
   9                                                                         Interim Report Q2 2010
Packaging
  Q2 2010 vs Q2 2009


                         7,583
                                                              Sales increased by 9% (24%*)
                                  6,958                                 Higher prices and volumes
                           9%


                                                              EBIT increased to SEK 306m (11**)
                                                                        Higher prices and volumes
SALES SEKm             Q2 2010 Q2 2009                                  Savings from restructuring program
                                                                        Increased raw material costs
                                                                        Negative currency impact
                          306




                                   11**

EBIT SEKm               Q2 2010 Q2 2009


EBIT margin               4.0% 0.2**%

* Adjusted for the divestment of the Asian packaging business and excluding exchange rate effects
** Excluding restructuring costs
   10                                                                                               Interim Report Q2 2010
Forest Products
  Q2 2010 vs Q2 2009

                                            Sales flat (+2%*)
                          4,308     4,304       Publication papers
                            0%                   • Higher volumes
                                                 • Lower prices
                                                Pulp and Solid-wood products
                                                 • Higher prices
SALES SEKm              Q2 2010 Q2 2009


                                            EBIT increased by 8% (8%*)
                           691      642
                                                Publication papers, decreased EBIT
                           8%
                                                 • Lower prices
                                                 • Increased raw material costs
                                                Pulp and Solid-wood products,
EBIT SEKm               Q2 2010 Q2 2009         increased EBIT
                                                 • Higher prices
EBIT margin              16.0% 14.9%


* Excluding exchange rate effects
   11                                                                             Interim Report Q2 2010
Outlook 2010
 Group
        Improved general market conditions
        Effects from price increases gradually during the
        second half 2010

 Hygiene businesses
        Good demand
        Increasing prices for Tissue

     Packaging
        Demand improvement
        Increasing prices

     Forest Products
        Recovery from low level for publication papers
        Price increases on magazine paper




12                                                          Interim Report Q2 2010
Q&A




13         Interim Report Q2 2010
14   Interim Report Q2 2010

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Presentation of SCA's interim report Q2 2010

  • 1. SCA Interim Report 1 January – 30 June 2010 Interim Report Q2 2010
  • 2. Q2 2010 vs Q2 2009 SCA market update Significantly increased raw material prices OCC +330% Recovered paper US +70% Recovered paper Europe +120% Pulp +60% Hygiene business Good growth for Incontinence care, AFH tissue and Feminine care Continued good growth in emerging markets Packaging and Forest Products Increased demand for Packaging • Corrugated volumes increased 9% Increased demand for Publication papers • Publication paper volumes increased 2% 2 Interim Report Q2 2010
  • 3. Q2 2010 results SEK millions Q2 Q2 Change, Change, Q1 unless otherwise stated 2010 2009 Q2/Q2,% Q2/Q2,%** 2010 Net sales 27,652 27,915 -1 6 26,722 EBIT* 2,440 2,368 3 6 2,027 EBIT margin* (%) 8.8 8.5 7.6 Profit before tax* 2,196 2,014 9 12 1,748 Earnings per share (SEK) 2.04 1.66 23 1.53 Cash flow from current operations 1,668 3,047 1,148 Debt/Equity ratio 0.62 0.71 0.57 * Excluding restructuring costs ** Adjusted for exchange rate movements 3 Interim Report Q2 2010
  • 4. H1 2010 results SEK millions H1 H1 Change, Change, unless otherwise stated 2010 2009 % %** Net sales 54,374 56,242 -3 4 EBIT* 4,467 4,504 -1 3 EBIT margin* (%) 8.2 8.0 Profit before tax* 3,944 3,525 12 16 Earnings per share (SEK) 3.57 3.24 10 Cash flow from current operations 2,816 4,687 Debt/Equity ratio 0.62 0.71 * Excluding restructuring costs ** Adjusted for exchange rate movements 4 Interim Report Q2 2010
  • 5. Q2 2010 vs. Q1 2010 Summary Group Sales increased 3% EBIT increased 20% Profit before tax increased 26% Business areas Higher EBIT in all business areas despite higher raw material costs Personal Care, EBIT increased 2% • Higher volumes Tissue, EBIT increased 11% • Higher volumes and lower distribution costs Packaging, EBIT increased 59% • Higher prices and volumes Forest Products, EBIT increased 42% • Higher prices and lower energy costs 5 Interim Report Q2 2010
  • 6. Net debt And debt payment capacity SEKm % 35% 31% 33% 28% 25% 6 Interim Report Q2 2010
  • 7. Debt maturity profile Total debt: SEK 42,492m 11,183 6,975 9,254 8,546 9 8,537 6,001 4,256 3,252 4,208 + Cash and cash equivalents SEK 3,999m Unutilized credit lines SEK 29,503m 7 Interim Report Q2 2010
  • 8. Personal Care Q2 2010 vs Q2 2009 6,418 6,650 Sales decreased 3% (+2%*) Incontinence care increased 5%* -3% Feminine care increased 7%* Baby diapers decreased 8%* SALES SEKm Q2 2010 Q2 2009 EBIT decreased by 8%** (4%***) 753** 820 Higher volumes -8%** Higher raw material cost Increased market activities EBIT SEKm Q2 2010 Q2 2009 EBIT margin 11.7%** 12.3% * Excluding exchange rate effects ** Excluding restructuring costs *** Excluding restructuring costs and exchange rate effects 8 Interim Report Q2 2010
  • 9. Tissue Q2 2010 vs Q2 2009 Sales decreased 4% (+2%*) 10,064 10,474 Consumer tissue decreased 1%* -4% AFH tissue increased 8%* EBIT decreased by 22% (19%*) Q2 2010 Q2 2009 Higher raw material costs Slightly lower prices 1,015 791 Lower distribution costs Synergies from acquisition -22% EBIT SEKm Q2 2010 Q2 2009 EBIT margin 7.9% 9.7% * Excluding exchange rate effects 9 Interim Report Q2 2010
  • 10. Packaging Q2 2010 vs Q2 2009 7,583 Sales increased by 9% (24%*) 6,958 Higher prices and volumes 9% EBIT increased to SEK 306m (11**) Higher prices and volumes SALES SEKm Q2 2010 Q2 2009 Savings from restructuring program Increased raw material costs Negative currency impact 306 11** EBIT SEKm Q2 2010 Q2 2009 EBIT margin 4.0% 0.2**% * Adjusted for the divestment of the Asian packaging business and excluding exchange rate effects ** Excluding restructuring costs 10 Interim Report Q2 2010
  • 11. Forest Products Q2 2010 vs Q2 2009 Sales flat (+2%*) 4,308 4,304 Publication papers 0% • Higher volumes • Lower prices Pulp and Solid-wood products • Higher prices SALES SEKm Q2 2010 Q2 2009 EBIT increased by 8% (8%*) 691 642 Publication papers, decreased EBIT 8% • Lower prices • Increased raw material costs Pulp and Solid-wood products, EBIT SEKm Q2 2010 Q2 2009 increased EBIT • Higher prices EBIT margin 16.0% 14.9% * Excluding exchange rate effects 11 Interim Report Q2 2010
  • 12. Outlook 2010 Group Improved general market conditions Effects from price increases gradually during the second half 2010 Hygiene businesses Good demand Increasing prices for Tissue Packaging Demand improvement Increasing prices Forest Products Recovery from low level for publication papers Price increases on magazine paper 12 Interim Report Q2 2010
  • 13. Q&A 13 Interim Report Q2 2010
  • 14. 14 Interim Report Q2 2010